Exhibit (h.1)
FORM OF ADMINISTRATION AGREEMENT
This AGREEMENT made this __th day of _____________, 2001 between
[name of entity] (the "Fund"), a [corporate form], and ING Pilgrim Group, LLC
(the "Administrator"), a Delaware corporation.
WHEREAS, the Fund is an open-end management investment company
registered under the Investment Company Act of 1940, as amended (the "1940
Act");
WHEREAS, the Fund desires to avail itself of the services of the
Administrator for the provision of administrative services for the Fund; and
WHEREAS, the Administrator is willing to render such services to the
Fund;
NOW THEREFORE, in consideration of the premises, the promises and
mutual covenants herein contained, it is agreed between the parties as follows:
1. Appointment. The Fund hereby appoints the Administrator,
subject to the direction of the Board of Trustees, for the period and on the
terms set forth in this Agreement, to provide administrative services, as
described herein, with respect to the Fund. The Administrator accepts such
appointment and agrees to render the services set forth herein.
2. Services of the Administrator. Subject to the general
supervision of the Board of Trustees of the Fund, the Administrator shall
provide the following administrative services:
(a) Provide all administrative services reasonably necessary for
the operation of the Fund other than the investment advisory services performed
by the investment manager or sub-adviser, including, but not limited to: (i)
coordinating all matters relating to the operation of the Fund, including any
necessary coordination among the investment manager, custodian, transfer agent,
dividend disbursing agent, and portfolio accounting agent (including pricing and
valuation of the portfolio), accountants, attorneys, and other parties
performing services or operational functions for the Fund; (ii) supervising the
maintenance by third parties engaged by the Fund of such books and records of
the Fund as may be required by applicable federal or state law; (iii) preparing
or supervising the preparation by third parties selected by the Fund of all
federal, state, and local tax returns and reports required by applicable law;
(iv) preparing and filing, with the assistance of counsel, and arranging for the
distribution of proxy materials and periodic reports to shareholders as required
by applicable law; (v) preparing and arranging for the filing, with the
assistance of counsel, of registration statements and other documents with the
Securities and Exchange Commission (the "SEC") and other federal and state
regulatory authorities as may be required by applicable law; (vi) taking such
other action with respect to the Fund as may be required by applicable law,
including without limitation the rules and regulations of the SEC and other
regulatory agencies; (vii) providing the Fund, at the Administrator's expense,
with adequate personnel, office space, communications facilities, and other
facilities
necessary for operation of the Fund as contemplated in this Agreement; (viii)
assist the Fund in conducting periodic repurchase offers in accordance with Rule
23c-3 under the 1940 Act; (ix) arranging for meetings of the Fund's Board of
Trustees and, in connection therewith, providing the Board with necessary or
appropriate information for its meetings; (x) providing non-investment related
statistical and research data and such other reports, evaluations and
information as the Fund may request from time to time; (xi) maintaining the
Fund's existence, and during such time as shares of the Fund are publicly
offered, maintaining the registration and qualification of the Fund's shares
under federal and state law; and (xii) responding to inquiries from shareholders
or their agents or representatives relating to the Fund, concerning, among other
things, exchanges among funds, or referring any such inquiries to the Fund's
officers or transfer agent. Nothing in this provision shall be deemed to inhibit
the Fund or its officers from engaging, at the expense of the Fund, other
persons to assist in providing administrative services to the Fund including,
but not limited to, accounting agents, recordkeeping agents, proxy solicitation
agents, attorneys, accountants, consultants and others.
(b) Render to the Board of Trustees of the Fund such periodic and
special reports as the Board may reasonably request;
(c) Make available its officers and employees to the Board of
Trustees and officers of the Fund for consultation and discussions regarding the
administration of the Fund and the services provided to the Fund under this
Agreement; and
(d) Develop and implement, if appropriate, management and
shareholder services designed to enhance the value or convenience of the Fund as
an investment vehicle.
3. Conformity with Applicable Law. The Administrator, in the
performance of its duties and obligations under this Agreement, shall act in
conformity with the Registration Statement of the Fund and with the instructions
and directions of the Board of Trustees of the Fund and will conform to, and
comply with, the requirements of the 1940 Act and all other applicable federal
and state laws and regulations.
4. Exclusivity. The services of the Administrator to the Fund
under this Agreement are not to be deemed exclusive, and the Administrator, or
any affiliate thereof, shall be free to render similar services to other
investment companies and other clients (whether or not their investment
objectives and policies are similar to those of the Fund) and to engage in other
activities, so long as its services hereunder are not impaired thereby.
5. Expenses. During the term of this Agreement, the Administrator
will pay all expenses incurred by it in connection with its activities under
this Agreement, except such expenses as are assumed by the Fund under this
Agreement and such expenses as are assumed by the investment manager pursuant to
an Investment Management Agreement. The Fund shall be responsible for all of the
other expenses of its operations, including, without limitation, the
administration fee payable hereunder; advisory fees; brokerage commissions;
interest; legal fees and expenses of attorneys; fees of auditors, transfer
agents and dividend disbursing agents,
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custodians and shareholder servicing agents; fees of accountants and accounting
services; the expense of obtaining quotations for calculating the Fund's net
asset value; taxes, if any, and the preparation of the Fund's tax returns; cost
of stock certificates and any other expenses (including clerical expenses) of
issue, sale, repurchase or redemption of shares; expenses of registering and
qualifying shares of the Fund under federal and state laws and regulations; all
expenses of periodic repurchase offers and of preparing, printing, and mailing
repurchase offer material to shareholders; expenses of printing and distributing
reports, notices and proxy materials to existing shareholders; expenses of
printing and filing reports and other documents filed with governmental
agencies; expenses in connection with shareholder and trustee meetings; expenses
of printing and distributing prospectuses and statements of additional
information to existing shareholders; fees and expenses of Trustees of the Fund
who are not "interested persons" of the Fund as that term is defined in the 1940
Act; trade association dues; insurance premiums; and extraordinary expenses such
as litigation expenses. To the extent the Administrator incurs any costs or
performs any services which are an obligation of the Fund, as set forth herein,
the Fund shall promptly reimburse the Administrator for such costs and expenses.
To the extent the services for which the Fund is obligated to pay are performed
by the Administrator, the Administrator shall be entitled to recover from the
Fund only to the extent of its costs for such services.
6. Compensation.
(a) For the services provided by the Administrator pursuant to this
Agreement, the Fund will pay to the Administrator the annual fee set forth in
Schedule A hereto.
(b) The administration fee shall be accrued daily by the Fund and paid
to the Administrator at the end of each calendar month.
7. Liability of the Administrator. The Administrator may rely on
information reasonably believed by it to be accurate and reliable. Except as may
otherwise be required by the 1940 Act or the rules thereunder, neither the
Administrator nor its stockholders, officers, directors, employees, or agents
shall be subject to any liability for, or any damages, expenses, or losses
incurred in connection with, any act or omission connected with or arising out
of any services rendered under this Agreement, except by reason of willful
misfeasance, bad faith, or negligence in the performance of the Administrator's
duties, or by reason of reckless disregard of the Administrator's obligations
and duties under this Agreement. The liability incurred by the Administrator
pursuant to this paragraph 7 in any year shall be limited to the revenues of the
Administrator derived from the Fund in that fiscal year of the Fund. The
Administrator shall look solely to Fund property for satisfaction of claims of
any nature against the Fund or a trustee, officer, employee or agent of the Fund
individually arising in connection with the affairs of the Fund.
8. Continuation and Termination. This Agreement shall become
effective on the date first written above, subject to the condition that the
Fund's Board of Trustees, including a majority of those Trustees who are not
interested person (as such term is defined in the 1940
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Act) of the Administrator, shall have approved this Agreement. Unless terminated
as provided herein, the Agreement shall continue in full force and effect for
two (2) years from the effective date of this Agreement, and shall continue from
year to year thereafter so long as such continuance is specifically approved at
least annually by the vote of a majority of the Board of Trustees of the Fund,
including a majority of the Board of Trustees of the Fund who are not parties to
this Agreement or "interested persons" (as defined in the 0000 Xxx) of the Fund
or the Administrator.
This Agreement may be terminated by the Fund at any time, without
the payment of any penalty, by vote of a majority of the Board of Trustees of
the Fund on sixty (60) days' written notice to the Administrator, or by the
Administrator at any time, without the payment of any penalty, on sixty (60)
days' written notice to the Fund.
9. Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original.
10. Applicable Law.
(a) This Agreement shall be governed by the laws of the State of
Arizona, provided that nothing herein shall be construed in a manner
inconsistent with the 1940 Act, the Investment Advisers Act of 1940, or any
rules or order of the SEC thereunder.
(b) If any provision of this Agreement shall be held or made
invalid by a court decision, statute, rule or otherwise, the remainder of this
Agreement shall not be affected thereby and, to this extent, the provisions of
this Agreement shall be deemed to be severable.
(c) The captions of this Agreement are included for convenience
only and in no way define or limit any of the provisions hereof or otherwise
affect their construction or effect.
11. Limitation of Liability for Claims. The Distributor is hereby
expressly put on notice of the limitation of liability as set forth in the
Declaration and agrees that the obligations assumed by the Trust on behalf of
the Portfolios pursuant to this Agreement shall be limited in all cases to the
applicable Portfolio and its assets, and the Distributor shall not seek
satisfaction of any such obligation from the shareholders or any shareholder of
the Portfolio or any other Portfolio of the Trust, or from any trustee, officer,
employee or agent of the Trust. The Distributor understands that the rights and
obligations of each Portfolio under the Declaration are separate and distinct
from those of any and all other Portfolios. [MASSACHUSETTS BUSINESS TRUSTS ONLY]
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IN WITNESS WHEREOF, the parties hereto have caused this instrument
to be executed by their officers designated below as of the day and year first
above written.
[NAME OF ENTITY]
By: _______________________________
ING PILGRIM GROUP, LLC
By: _______________________________.
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